An amphiphilic graft polymer, (PAM-g-PBA), polyacrylamide (PAM) having poly(n-butyl acrylate) (PBA) side chains, was obtained by radical copolymerization of acrylamide with PBA macromer in solution. The macromer was synthesized by free radical polymerization of butyl acrylate in the presence of different amounts of thioglycolic acid as the chain transfer agent, followed by termination with glycidyl methacrylate. The reactivity ratio and effects of copolymerization conditions on the conversion of macromer or grafting efficiency were studied. The crude products were purified by extraction with toluene and water successively. Thc purified graft copolymer was characterized by IR, DSC and TEM. PAM-g-PBA can bring about microphase separation and exhibits good emulsifying properties and water absorbency. PAM-g-PBA exhibits a very good compatibilizing effect on the acrylic rubber/poly(vinyl chloride) blends. 2%-3% of the graft copolymer is enough for enhancing the tensile strength of the blends. The tensile strength of the blends is more than twice that without the compatibilizer. DSC and SEM demonstrated the enhancement of compatibility in the presence of the graft copolymer.